Register a Business as a Sole Proprietorship

The global health crisis that has had major cities worldwide on lockdown. Businesses closed down. Employees were laid off. But there were the fortunate ones who were able to work from home, open online shops as new sources of income. However, many have no idea on how to start a business that is compliant to government regulations.

For an individual, the easiest to set-up and register is the Sole Proprietorship. The other advantages of a Sole Proprietor are a) an individual can set it up with minimal regulatory requirements, b) (usually) lower cost of registration and all profits will be enjoyed by the owner. On one hand, Sole Proprietorship also have some disadvantages such as all business risk are shouldered by the owner and creditors can go after personal assets.

Here are the government agencies a Sole Proprietorship are required to register:

  1. Department of Trade and Industry (DTI)
  2. Barangay
  3. Municipal City
  4. Bureau of Internal Revenue (BIR)
  5. Social Security Service (SSS)
  6. Philippine Health Insurance (PhilHealth)
  7. Home Development Mutual Fund (HDMF)

The Steps and Procedures in Registering a Sole Proprietorships are as follows:

  1. Registering a Business Name with DTI
    1. Go to DTI website (https://bnrs.dti.gov.ph/search) to veriy if the business name is available
    2. If the business name is available, fill-up the BNR Form No. 01-2018 BUSINESS NAME REGISTRATION SOLE PROPRIETORSHIP APPLICATION FORM
    3. Pay the registration fee and other fees
    4. Get the DTI Certificate of Registration (if you applied online, download the DTI Certificate of Registration sent via email).
  1. Obtaining Barangay Clearance
    1. Go to the barangay hall

Bring the following

      • DTI business registration/certificate
      • Contract of Lease (if renting) or Land Title and Tax Declaration (if owned)
      • Certificate from Homeowner’s Association (if your business address is within a village or subdivision or condominium)
        1. Fill-up forms required
    • Pay the registration fee
    • Get the Barangay Clearance
  1. Obtaining Locational Clearance

If you are renting within a building, the building administrator usually have this, otherwise, you have to get it by yourself.  Here are the steps in obtaining Location Clearance at the Municipal Hall:

    1. Go to City Planning and Development Office (CPDO) and obtain application form
    2. Fill up the application form and submit it to CPDO with the following supporting documents:
      • DTI Business Name Certificate
      • Barangay Clearance / Permit
      • Contract of Lease or Land Title / Tax Declaration
      • Sketch of Location
      • Photos of frontage and interiors of the business
    3. If the location is complaint to City’s Comprehensive Land Use and Zoning Ordinance, CPDO will schedule for site inspection
    4. After evaluation, pay at the Treasurer’s Office.
    5. Obtain the Location Clearance
  1. Obtaining Mayor’s Permit

Before going to the Municipal Hall, make sure that you have all the requirements as follows:

  • DTI Business Name Certificate
  • Barangay Clearance / Permit
  • Authorization letter of owner with ID (if person processing is other than the owner)
  • Contract of Lease or Land Title / Tax Declaration
  • Sketch of Location
  • Occupancy Permit (if you are renting in a building, you can obtain this from the building administration)
  • Locational Clearance (if you are renting in a building, you can obtain this from the building administration)
  • Public Liability Insurance (insurance agents also loiter around at the Municipal Hall)
  • Community Tax Certificate (Cedula)

Steps in Securing Municipal/Business Permits

    1. Go to the Business Permits Licensing Office (BPLO) and obtain/secure application form
    2. Fill up the application form and submit it to BPLO with the supporting documents (3.1 and 3.9)
    3. Get the approved application form and billing statement and pay the same at the designated payment window’s
    4. After the payment, go to the assigned Fire Department personnel then obtain/submit the application form
    5. Go to the Sanitary Division then obtain/submit the application form
    6. Go back to BPLO or designated office to obtain the Municipal/Business Permit
  1. Registering with BIR
  2. Registering with SSS
  3. Registering with PhilHealth
  4. Registering with HDMF

This Post Has 2 Comments

  1. Yoojin Shin

    Hi,

    May I know how much it would cost to consult with you?

    I currently have 3 on going businesses registered as sole props (all 3 are food related) and I wish to open my own practice soon (Dental clinic).

    I want to consult to know if it is better to register as another sole prop or OPC or corporation?

    Hoping to hear from you soon.

    Thanks

    Best regards,
    Yoojin

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